(Scenario: Two Identical Firms)Use Scenario: Two Identical Firms

question 64

Multiple Choice

(Scenario: Two Identical Firms) Use Scenario: Two Identical Firms.Suppose the two firms decide to cooperate and collude,resulting in the same amount of production for each firm.What is the profit-maximizing price and output for the industry? Scenario: Two Identical Firms
Two identical firms make up an industry in which the market demand curve is represented by Q = 5,000 - 4P,where Q is the quantity demanded and P is price per unit.The marginal cost of producing the good in this industry is constant and equal to $650.Fixed cost is zero.

• A)P = $400,Q = 5,000
• B)P = $950,Q = 1,200
• C)P = $600,Q = 1,500
• D)P = $300,Q = 2,000

---

Definitions:

Watching

The act of observing attentively; often related to learning, monitoring, or gaining understanding from the behavior of others.

Aggressive Behavior

Actions or conduct that are intended to cause harm or exert dominance over another, which can be physical or verbal in nature.

Reinforcing

Enhances the likelihood of a behavior's recurrence by introducing positive outcomes or removing negative ones following the behavior.

T-maze

A T-shaped apparatus used in behavioral experiments, typically to study learning and memory in small animals by presenting them with a choice between two paths.